Question

How would you approach and advise a customer about debt recovery

Answer 1

Debt collections and recovery of bad debts happen generally in every operating business. In today’s volatile and tough economy situation, customers can have more problem than normal in paying. The situations create stress on the business and increase the cost of operation substantially. In case of invoices aren’t getting paid, sometimes company hire a commercial debt recovery agency for getting help in debt payments. These agencies are experts in domain of debt collection mainly in business to business environment. There are good ways as well as bad ways to recover debt . Here are some ways to increase your success

Be ready and prepared: Before contacting with a delinquent customer, get all information about the customer, like collect copies of all unpaid invoices, terms of contracts, payment cycle ,and any other information .

Create a black and white Document for Everything.

Don’t force and be Pleasant in your method: The client should be contacted with proper channel and ways. The tone and way you talk can impact how success in recovery. Try to start with a friendly approach and respond positively. Ask if client need any additional information and support for debt payment.

Avoid Confrontation and Manipulation

Provide multiple and easy Options for debt payments

Reframe the Terms and condition of contract to make it more supportive for debt payment

Keep Communicating for long time even , the customer is ready to pay

Debt recovery is always a tough and time taking process , so be ready and have patients .

Some strategy for good recovery can be follow a regular and systematic process , as always keep  up-to-date contact information of your debtors , Keep in regular contact with them , regular monitor the unpaid debts, use a collection management system in your firm and resolve all disputes as and when arise.